U.S. consumer sentiment index edges up to 72.8 in August from 72.5

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DraftKings posts wider-than-expected loss as revenue beats

DraftKings Inc. shares fell undefined 5.7% in premarket trade Friday, after the company posted a bigger-than-expected loss for the second quarter but sales that topped estimates. The stock had already taken a dip after a Bloomberg report that the Internal Revenue Service will require fantasy sports companies to pay federal excise tax on their entry fees. Boston-based DraftKings said it had a loss of $161.4 million, or 55 cents a share, in its fiscal second quarter to June 30, wider than the loss of $28.1 million, or 15 cents a share, posted in the year-earlier period. Revenue rose to $70.9 million from $57.4 million. The FactSet consensus was for a loss per share of 20 cents and revenue of $66.4 million. The company said pro forma revenue, including its merger with SBTech (Global) Ltd and Diamond Eagle Acquisition Corp., as if it had been completed on Jan 1. 2019, would have been $75 million. The company ended the quarter with more than $1.2 billion in cash after a follow-on offering. The company said it saw increased engagement on its platform toward the end of the quarter as sporting events began to resume. “This positive momentum has accelerated with the return of MLB, the NBA, WNBA, the NHL, and MLS,” it said in a statement. DraftKings is now expecting pro forma revenue of $500 million to $540 million for fiscal 2020, equal to growth of 22% to 37%. The company is not expecting any impact to its long-term plans from COVID-19. Shares have gained 237% in the year to date, while the S&P 500 undefined has gained 4.4%.

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